Tuesday, May 26, 2009

New player makes competing offer for Asarco

It's getting harder to keep track of the Asarco bankruptcy. A third company has now offered a plan to take over the company. Reuters reports that hedge fund Harbinger Capital Partners, a major holder of Asarco bonds, offered $500 million to compete with Sterlite Industries and Grupo Mexico.

The bankruptcy court judge ruled yesterday that Harbinger can submit its plan but will have to provide assurances it is not a "bottom feeder."

Harbinger is reported saying its plan is better because it lets Asarco keep the $6.87 billion judgement against Grupo Mexico made earlier this year. Harbinger lists one of its four core investment categories as "investments in companies that are already in default, in bankruptcy, or in some other stage of financial failure or distress."

The next hearing is set for June 5.

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